The easiest way change the LLC structure is to have the leaving members consent to terminate their status as members, then amend or draft a new LLC Operating Agreement deleting their names. You should review the filings with the secretary of state to make sure none of the removed partners signed any. If they did, you’ll have to amend those filings as well.
If they do not consent to leaving the LLC you can try to negotiate a compromise such as a buyout, or phase out, and pay whatever fee they deem reasonable to buy out their stake in the company. If negotiation isn’t possible, or they do not want to leave the company, you may need to consult your operating agreement and determine if leaving the LLC and starting fresh is an option.
For a free, confidential conversation to discuss LLC operating agreements and other business law matters, including business formation legal services, contact Maryland business attorney Stephen J. Reichert at 410-299-4959, sreichert@reichertlegal.com or by clicking here.
Day, evening and weekend appointments are available in office or at your residence. Mr. Reichert personally serves business law clients throughout the entire state of Maryland.
Stephen looks forward to assisting you with your Maryland business law needs.
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